After a full five years of receiving taxpayer support, GM announced that American automakers General Motors (GM) is back on its own two feet, according to USA Today. While President Obama was criticized heavily at the time of his decision to bail out the Detroit manufacturer, when the U.S. government finally sold the last of its GM shares to the public. No longer will the company have to be referred to as 'Government Motors.' US assistance to its auto industry began in 2008 and lasted until the end of 2013.
"For our autoworkers and the communities that depend on them, the road we've taken these past five years has been a long and difficult one," Obama wrote in a statement. "But it's one we've traveled together. And as long as there's more work to do to restore opportunity and broad-based growth for all Americans, that's what we'll keep doing to reach the brighter days ahead."
Car sales pick up rapidly
American automakers such as GM are not only operating independently from the Treasury, they are putting up some of the best numbers in recent memory. Holiday auto sales are already accounting for the most industry sales growth since 2007 thanks to help from Ford and Chrysler. According to Bloomberg, big-name investors such as Berkshire Hathaway and Hayman Capital Management are taking notice, buying heavily into the revitalized industry. With investor support of this caliber, the Midwest can expect lower rates of unemployment and increased manufacturing quality from auto plants.
"There have been tens of thousands of people that can now put food on the table," GM North America President Mark Reuss told the news source. "There are plants that operate at 110 percent of capacity and there are all of the good things that happen in those towns where those plants are, and the supply bases."
Increased domestic auto sales is a sign of overall economic improvement, especially given the support from high-profile investors. Many other industries tie in with automobile manufacturing, including aftermarket parts, repair, maintenance, and car insurance. With more working in plants and buying cars, the American economy is already seeing a big boost, said Bloomberg. GM has reported 15 consecutive profitable quarters and shows no sign of stopping. Although the U.S. government lost a part of its initial investment, Americans are generally thankful for the second chance granted to its automakers.